Kirkland Lake Gold Inc./December 31st Reserve & Resources Update; Significant Increases on the Former JV Properties

KIRKLAND LAKE, ONTARIO--(Marketwired - May 21, 2013) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI)(AIM:KGI) presents its annual gold reserve and resource estimates (as at December 31, 2012) for its operations in Kirkland Lake, Ontario on both the historic Main Break and the high grade South Mine Complex (SMC) discovered in 2005.

During 2012, the Company concentrated its exploration efforts on expanding the SMC on the properties previously held under a joint venture with Queenston Mining Inc. and on replacing the ounces mined in the SMC and Main Break. In 2012, the Company completed 200,000 feet of underground exploration drilling and 183,000 feet of surface exploration drilling. An additional 124,000 feet of underground production drilling was completed during this period as well.

"The intention of this past year's exploration program was to replace the proven and probable reserves mined by the Company and grow the measured and indicated resource categories, both of which were successful," said Company President, Brian Hinchcliffe. "Our total reserve and resource base is close to our target; therefore, going forward we will focus on replacing ounces mined at elevated production levels and maintaining current mineral inventory. We have therefore reduced next year's exploration underground footage to 94,000 feet and surface exploration footage to 145,000 feet from 200,000 feet and 183,000 feet, respectively." added Hinchcliffe.

Exploration Manager Stewart Carmichael commented, "Drilling this last year on the former joint venture properties was very successful. Following the completion of the Company's acquisition of the remaining 50% of the South Claims joint venture in August 2012 and our drilling programme, ounces have increased by 167.5% in the indicated resource category at grades of 0.94 ounces per ton and by 190.8% in the inferred category at grades of 0.89 ounces per ton. In addition, these results do not take into account the surface drilling results on the properties."

Highlights of the Current Reserve and Resource Estimates

The highlights of the reserve and resource estimates, as at December 31, 2012, include:

• The goal for the past calendar year was to replace SMC and Main Break reserves while at the same time expanding the Company's resources. This goal was achieved; proven and probable reserves in the SMC showed a minor decrease of 1.0% after 50,848 ounces were recovered from the SMC. Mine wide reserves similarly showed a minor decrease of 1% after a total of 86,250 ounces (50,848 ounces from the SMC, 35,402 ounces from Main Break) were recovered from January 2012 to December 2012.

• SMC resource increases were due in part to the inclusion of the Queenston portion of the resource base: but moreover, exploration success added an additional 33.8% to the indicated resource total and an additional 45.4% to the inferred resource total. Exploration on the SMC will continue to be focused on the HM and North Amalgamated properties from new drill bays recently excavated on the 5300 foot level. The previous joint venture properties are now estimated to contain 219,000 tons at a grade of 0.94 opt in the indicated category (206,000 ounces) with an additional 285,000 tons grading 0.89 opt in the inferred resource category (253,000 ounces)

• Surface drilling continued to enjoy considerable success in identifying near surface mineralization on the previous joint venture properties. It is expected that new resources defined by these programs will be reported under the 2013 estimates.

• Proven and probable reserves for the entire mine now stand at 3,230,000 tons at a grade of 0.45 opt or 1,454,000 contained ounces, a minor decrease from the previous year. The proven and probable grade decreased by 12% over the previous period reflecting higher mining dilution rates, which take into account variations in geometry as well as inclusion of lower grading material from the SMC.

• Though the majority of resource increases were derived from the SMC, other sources including the Main Break contributed as well. Mine wide measured and indicated resources increased over the past year by 15.3% and now stand at 3,813,000 tons at a grade of 0.49 opt (1,871,000 ounces) with the inferred resources increasing by 15.2% and now stand at 2,238,000 tons at a grade of 0.52 opt. (1,157,000 ounces).

SOUTH MINE COMPLEX RESERVES & RESOURCES

	As at December 31, 2011					As at December 31, 2012
	Tons (Tonnes)		Grade Opt (g/t)		Ounces	Tons (Tonnes)		Grade Opt (g/t)		Ounces	% Change (in total ounces)
Reserves:
Proven	229,000 (208,000	)	0.52 (17.8	)	119,000	321,000 (291,000	)	0.43 (14.7	)	139,000	-1.0	%
Probable	1,044,000 (947,000	)	0.67 (23.0	)	697,000	1,220,000 (1,106,000	)	0.55 (18.9	)	669,000
Resources:
Measured	14,000 (13,000	)	0.24 (8.2	)	3,000	23,000 (21,000	)	0.25 (8.6	)	6,000	+24.1	%
Indicated*	1,228,000 (1,114,000	)	0.63 (21.6	)	777,000	1,435,000 (1,302,000	)	0.67 (23.0	)	962,000
Inferred*	1,000,000 (907,000	)	0.66 (22.6	)	662,000	1,223,000 (1,110,000	)	0.67 (23.0	)	824,000	+24.5	%
Due to rounding there may be some small discrepancies in the numbers.

*Includes 100% of previous joint venture ounces with Queenston Mining.

Does not include surface drilling results on the previous Joint Venture properties. Resources associated with surface drilling will be reported in the 2013 estimates.

South Claims

(Previous Joint Venture With Queenston Mining Inc.)

	As at December 31, 2011 (Company's net interest of 50% in South Claims)					As at December 31, 2012 (Company's wholly owned interest in South Claims)
	Tons (Tonnes)		Grade opt (g/t)		Ounces	Tons (Tonnes)		Grade Opt (g/t)		Ounces	% Change (in total ounces)
Reserves:
Proven	-		-		-	-		-		-	-
Probable	-		-		-	-		-		-
Resources:
Measured	-		-		-	-		-		-	+167.5	%
Indicated	66,000 (60,000	)	1.17 (40.1	)	77,000	219,000 (199,000	)	0.94 (32.2	)	206,000
Inferred	87,000 (79,000	)	0.99 (33.9	)	87,000	285,000 (258,000	)	0.89 (30.5	)	253,000	+190.8	%
Due to rounding there may be some small discrepancies in the numbers.

The Company completed the acquisition of the remaining 50% interest in South Claims in August 2012.

Indicated Resources increased by 33.8% on top of the ounces gained by the purchase of the Joint Venture property alone. Inferred Resources increased by 45.4% on top of the ounces gained by the purchase of the Joint Venture property alone.

Does not include surface drilling results on the previous Joint Venture properties. Resources associated with surface drilling will be reported in the 2013 estimates.

PROPERTY WIDE RESERVES & RESOURCES

(Including the South Mine Complex)

	As at December 31, 2011					As at December 31, 2012
	Tons (Tonnes)		Grade opt (g/t)		Ounces	Tons (Tonnes)		Grade Opt (g/t)		Ounces	% Change (in total ounces)
Reserves:
Proven	1,269,000 (1,151,000	)	0.42 (14.4	)	539,000	1,361,000 (1,235,000	)	0.39 (13.4	)	530,000	-1.3	%
Probable	1,615,000 (1,465,000	)	0.58 (19.9	)	934,000	1,869,000 (1,696,000	)	0.49 (16.8	)	924,000
Resources:
Measured	1,070,000 (971,000	)	0.40 (13.7	)	424,000	1,094,000 (992,000	)	0.39 (13.4	)	430,000	+15.3	%
Indicated*	2,364,000 (2,145,000	)	0.51 (17.5	)	1,199,000	2,719,000 (2,467,000	)	0.53 (18.2	)	1,441,000
Inferred*	1,971,000 (1,788,000	)	0.51 (17.5	)	1,004,000	2,238,000 (2,030,000	)	0.52 (17.8	)	1,157,000	+15.2	%
Due to rounding there may be some small discrepancies in the numbers.

*Includes 100% of previous joint venture ounces with Queenston Mining.

The above reserve and resource estimates have been audited and verified, and the technical disclosure in this press release has been approved, by the Company's independent reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. He is a 'qualified person' under National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. His report detailing the December 31, 2012 reserve and resource estimates will be filed on SEDAR (www.sedar.com) within 45 days of this press release. See 'Notes for Reserves and Resources' below for key assumptions, parameters and methods used to estimate the foregoing reserves and resources.

Exploration Plans for Fiscal 2014

Although reserves and resources for the Company will be based on a calendar year end, the exploration budget will continue to be based on the Company's fiscal year end (April 30^th). The Company's [wholly/largely] discretionary exploration budget for fiscal 2014 includes C$4.8 million in underground exploration (approximately 94,000 feet drilling) utilizing four rigs and C$4.5 million on surface exploration utilizing (approximately 145,000 feet drilling utilizing three rigs. Surface exploration will continue to concentrate on the previous joint venture properties (South Claim), underground exploration will be divided equally between continued testing the HM and North AK properties and other targets more closely associated with the '04 Break. Underground exploration development to facilitate underground drilling will include driving a 700 foot cross cut from the -5300 foot level, south on the South Claims to allow testing of the SMC which remains open to depth.

Notes for Reserves and Resources:

1. The reserves and resources have been classified according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves: Definition and Guidelines (December 2005).
2. The reserves and resources are estimated using the polygonal method.
3. Resources do not include mineral reserves.
4. All intersections are calculated out to a 6.0 foot minimum horizontal mining width for structures dipping greater than 45 degrees. The minimum mining height for structures dipping less than 45 degrees is 9.0 feet.
5. Dilution is added to reserves at varying rates depending on mining method, and the width of the ore. The average dilution of the reserves at December 2012 is 31% at 0.02 opt, up from an average of 22.0% the previous year. Long-hole stopes are diluted by 50-100%, mostly 50%. Cut and fill stopes are diluted 15-50%.
6. All higher grades are cut to 3.50 opt. Based on a statistical analysis completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the Company has implemented various higher grade cutting factors for four zones in the South Mine Complex. These four zones are the New South Zone (7.2 oz gold/ton), Lower D North (9.3 opt), Lower D North Footwall (4.8 opt), and the #7 and #7 HW Zones (6.4 opt). Cut-off grades of 0.15 opt and 0.18 opt are used for reserve and resource calculations, depending on the location, and economics of the block. Generally, a cut-off of 0.18 opt is required on a whole-block basis to achieve profitability and reserve classification. It is possible to have sub-blocks within an ore reserve block that assay less than any cut-off which have been incorporated for mining or geotechnical reasons. Ore blocks that grade between 0.15 opt and the cut-off of 0.18 opt have been classified as resource.
7. The area of influence of the proven and measured categories are 30 feet from development chip samples, probable and indicated categories are 50 feet of radius from a known sample point (drill holes) and inferred is another 50 feet of influence.
8. A 94% tonnage recovery is used. Continuity of the veins appears very good.
9. The assumptions used include US $1,400.56 per ounce of gold, and an exchange rate of C$1.0004 = US $1.00.
10. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect its estimate of mineral resources.
11. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

About the Company

Kirkland Lake Gold's corporate goal is to create a self sustaining and long lived intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years for as long as practicable.

Cautionary Note Regarding Forward Looking Statements

This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2012 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

Glossary of Terms

National Instrument 43-101 Definitions of Resources and Reserves

The Reserve and Resource estimation classifications as prescribed in National Instrument 43-101 are given here for clarity.

Mineral Resource

Mineral Resources are sub-divided into 3 categories depending on the geological confidence. The highest level with the most confidence is the 'Measured' category. The next level of confidence is the 'Indicated' category and the lowest level, or the resource with the least confidence, is the 'Inferred' category.

Inferred Mineral Resource

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling, gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Indicated Mineral Resource

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

Measured Mineral Resource

A 'Measured Mineral Resource' is that part of a Mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

Mineral Reserve

Mineral Reserves are sub-divided into 2 categories. The highest level of Reserves or the level with the most confidence is the 'Proven' category and the lower level of confidence of the Reserves is the 'Probable' category. Reserves are distinguished from resources as all of the technical and economic parameters have been applied and the estimated grade and tonnage of the resources should closely approximate the actual results of mining. The guidelines state "Minerals Reserves are inclusive of the diluting material that will be mined in conjunction with the Mineral Reserve and delivered to the treatment plant or equivalent facility." The guidelines also state that, "The term 'Mineral Reserve' need not necessarily signify that extraction facilities are in place or operative or that all government approvals have been received. It does signify that there are reasonable expectations of such approvals."

Probable Mineral Reserve

A 'Probable Mineral Reserve' is the economically mineable part of an Indicated and in some circumstances a Measured Mineral Resource demonstrated by a least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Proven Mineral Reserve

A 'Proven Mineral Reserve' is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

A more detailed list of technical terms can be found at http://klgold.com/pdf/financials/aif2012.pdf

Macassa Mine Calculation Method:

Basic Information

All of the assay data is plotted on plans and sections to be used for zone interpretations.

The ore reserves are calculated on 20 scale (imperial measurements) longitudinal sections or plan views in the case of veins dipping less than 45 degrees. Some calculations are done on 10 scale longitudinal using a modified polygon method of blocking.

Each stope area has a section or plan and a work sheet that is kept on file.

The calculated grade, zone width, area of influence and resource or reserve category for each data set (ie. Drill hole or chip sample assays) is entered into a spread sheet. For reserves the expected dilution based on the assumed mining method is included. A separate page for each stope area is maintained.

Minimum Width

The minimum mining width for steep-dipping structures has been increased in 2011 from 5.0 feet to 6 feet.

The minimum mining height for flat structures dipping less than 45° has been increased in 2011 from 8.0 feet to 9.0 feet.

Minimum Strike Length

The minimum strike length for a block is 21 ft (3 sets of chip assays).

Areas of Influence

The radius of influence from a sampled heading is 30 feet for Measured Resource/Proven Reserve (MR/PV)

A MR/PV Block must be exposed by at least one drift and tested between drifts by drilling in a 25 to 30 foot pattern. Where continuity is proven with the drilling, the intervening polygons that are based on the 25 to 30 foot drill pattern may be considered as MR/PV blocks. Drill holes that are only used for MR/PV blocks when the block is otherwise very well defined. This only occurs below the 57 level where there is development on all 4 sides of a massive sheet of continuous ore.

For an Indicated Resource/Probable Reserve (IR/PB) block the radius of influence is an additional 50 feet (30-80 feet from the data). This applies to blocks sampled on two sides by workings a maximum of 150 feet apart where no drilling exists, or above and below a drift where drill hole spacing is greater than 100 feet. For blocks with only drilling a 50 foot radius is used.

Inferred Resource blocks are an additional 50 feet from the IR/PB block (from 80 to 130 ft. from the data). This applies to blocks bounded on one side by a MR/PV or IR/PB. Blocks on a proven mineralized trend that are drilled on a spacing of greater than 100 feet but less than 200 feet are included as an Inferred Resource.

Raises that have been bored are usually ignored in the calculations. Most of the raises are only 42-60" in diameter, and are not representative of the ore width.

Test hole and drift muck data is not used for ore reserve calculations.

Density of Ore

The density or tonnage factor used to convert the volume of the blocks to tons is 11.7 cu ft/ton for all the zones except the Lower D.

The Lower D Zone volumes were converted at a density of 11.5 cu ft/ton due to the additional sulphides that are present.

The density traditionally used in the camp was 12.0 cu ft/ton. There have been a number of studies that suggest that the traditional number was too high and consequently gave an underestimated tonnage. The difference in the tonnage estimate is only about 2.5% between the density used in the past and the current density being used. As this has been applied to all blocks the changed density does not affect the reserve grades.

In 2007 a total of 95 samples was used to measure the density of the SMC zones. These samples confirmed that the density used for the Lower D of 11.5 cu ft/ton was realistic. The other SMC zones varied and it appears that the 11.7 cu ft/ton used overall at Macassa is reasonable. The tonnage difference between 11.5 and 11.7 is less than 2%. This difference is well within the estimation accuracy of the resources and reserves.

The assays of the samples varied from 0.1 ounces of gold per ton (opt) to 42.6 opt and the densities varied from 12.1 cu ft/ton to 10.5 cu ft/ton, however there was no correlation between the grade and the density.

Gold Price

The gold price used for theses estimates is US$1,400.56. The exchange rate averaged over the same period is US$1.00=$1.0004 CAD.

Cut-Off Grade

Cut-off grades of both 0.15 opt and 0.18 opt are used for resources and reserve calculations depending on the location and economics of the block. Generally a cut-off of 0.18 opt is required on a whole-block basis to achieve profitability. This cut-off is based on a chosen gold price and the operating cost forecast. For mining or geotechnical reasons some sub-blocks below the cut-off may be included. Blocks that grade between 0.15 and the cut-off of 0.18 opt are classified as resource blocks.

The resources at the #2 Shaft are blocks greater than 0.25 opt.

Capping of Assays

Macassa used to use a more complex system for cutting assays than it does now. The capping system currently in use, is based on a Kinross report by B. Davis (1995). It appears that this simpler single cap method gives much the same results as the old system. It is probably not the final answer. As new ore is found in different settings the capping procedure may need to be modified.

The effect of grade capping can only be truly examined when a large tonnage has been mined and the recovered gold can be compared with forecast for that period.

Grade capping or cutting is necessary at Macassa. The capping practise for the main zones has been used on some of the zones in the SMC. Assays higher than 3.5 opt are cut to 3.5 oz. This capping practise appears to be reasonable.

Some of the zones in the SMC have increased grades much higher than has been normally found in the main zones. This increased grade is also associated with a different style of mineralization. Initial investigation by the Company's geological staff indicated that the historic cutting factor of 3.5 opt was understating the grade of mineralization for the SMC.

The consulting firm of Scott Wilson Roscoe Postle Associates Inc. (SWRPA) was retained in 2007 to investigate, by statistical analysis, 10 of the larger mineralized zones forming part of the SMC. They concluded that there were sufficient data points for a statistical analysis of seven of the 10 zones viewed. As a result, the Company has implemented various higher grade cutting factors for four of the seven zones. These four zones are the New South Zone (7.2 opt ), Lower D North (9.3 opt), Lower D North Footwall (4.8 opt), the #7 and #7 HW Zones (6.4 opt). These new capping levels are now being used on both drill hole assays and underground chip assays.

These revised cutting factors, based on the mean of the assays in the zone plus one standard deviation, are considered to be conservative and are lower than those recommended by SWRPA. Accordingly, the factors may be subject to upward revision as more data points are generated.

Dilution of Reserves

The dilution applied to the reserves depends on the type of stope that is anticipated for the mining blocks. The dilution is added on a stope basis. All dilution is assigned a grade of 0.02 opt.

Dilution has not been added to the resource blocks.

The average dilution included in the Reserves of December 30, 2012 is 31%.

Long hole stopes are diluted by 50-100%, mostly 50%.

Cut-and-fill stopes are diluted 15-50%.

These dilution factors are based on a comprehensive study by Barrick in 1994 and modified on the recent mining experience at Macassa.

Mining Recovery

The recovery of the ore blocks is anticipated at 94.2% of the diluted reserve.

This figure has been applied to all of the reserve blocks but not to the resource blocks.

December 31, 2012 Resources and Reserve:

The resource estimates do not include the reserves.

The reserve estimates are recoverable, diluted and in-situ.

The resources and reserves include previous joint venture partner Queenston Mining Inc. share of resources.